Foreclosures Are Down Year-Over-Year In San Diego!

Is the real estate climate in San Diego looking sunny once again?

Have you been looking for some good news when it comes to the San Diego real estate market? Well here’s one piece of good news that San Diegans can be happy about. We’ve all heard that the national housing market is still suffering and that there’s still tons of foreclosures hitting the market. Well according to the latest numbers the number of foreclosure in the San Diego housing market have dropped.

The latest numbers show that the number of people who defaulted on their mortgage dropped by 34.6 percent year-over-year. That’s great news for the San Diego housing market and its residents.  As far as actual foreclosures, those showed a drop of 14% in 2010 compared to 2009.

These are good signs that San Diego is doing better than the overall national market. This could also be signs that San Diego is experiencing the bottom of the market and that the buyer’s market we experienced could be coming to an end. There are other factors of course but the slight rise in mortgage rates could also have a large impact on buyers still sitting on the fence waiting to see what the housing market does.

The so called “shadow inventory” which is the flood of foreclosures that we’ve been awaiting since Jan. 2009 hasn’t arrived thus far. The recent issue with banks following proper legal foreclosing process will definitely stall foreclosures from hitting the market. If and when they do hit the market you can count on banks releasing those properties in batches instead of flooding the market which can only hurt them by increasing inventory and forcing prices downward.

Bottom line if you’re contemplating purchasing a home in San Diego I and the data would suggest you start the buying process to ensure you get the best deal possible.